URGENT! Talks Day #4: Producers Present New Media Proposals To Writers; WGA Responds It's A Rollback & Rejects; But Is This The Whole Offer Or Just 1/2 Of It?

THURSDAY PM UPDATE: I’m told WGA negotiators are still waiting for the other “half” of the AMPTP’s Day #4 new proposals (the half that presumably contains the missing terms on ESTs, electronic sell-throughs?) which agent Bryan Lourd said should be in their hands by Tuesday if not before. Then the writers will make a counter-offer to producers on Tuesday. Here’s the WGA West and East email to members critical of today’s New Media offers by the AMPTP on streaming, content made for new media, and programming delivered over digital broadcast channels:

To Our Fellow Members,
After four days of bargaining with the AMPTP, we are writing to let you know that, though we are still at the table, the press blackout has been lifted.

Our inability to communicate with our members has left a vacuum of information that has been filled with rumors, both well intentioned and deceptive.

Among the rumors was the assertion that the AMPTP had a groundbreaking proposal that would make this negotiation a “done deal.” In fact, for the first three days of this week, the companies presented in essence their November 4 package with not an iota of movement on any of the issues that matter to writers.

Thursday morning, the first new proposal was finally presented to us. It dealt only with streaming and made-for-Internet jurisdiction, and it amounts to a massive rollback.

For streaming television episodes, the companies proposed a residual structure of a single fixed payment of less than $250 for a year’s reuse of an hour-long program (compared to over $20,000 payable for a network rerun). For theatrical product they are offering no residuals whatsoever for streaming.

For made-for-Internet material, they offered minimums that would allow a studio to produce up to a 15 minute episode of network-derived web content for a script fee of $1,300. They continued to refuse to grant jurisdiction over original content for the Internet.

In their new proposal, they made absolutely no move on the download formula (which they propose to pay at the DVD rate), and continue to assert that they can deem any reuse “promotional,” and pay no residual (even if they replay the entire film or TV episode and even if they make money).

The AMPTP says it will have additional proposals to make but, as of Thursday evening, they have not been presented to us. We are scheduled to meet with them again on Tuesday.

In the meantime, we felt it was essential to update you accurately on where negotiations stand. On Wednesday we presented a comprehensive economic justification for our proposals. Our entire package would cost this industry $151 million over three years. That’s a little over a 3% increase in writer earnings each year, while company revenues are projected to grow at a rate of 10%. We are falling behind.

For Sony, this entire deal would cost $1.68 million per year. For Disney $6.25 million. Paramount and CBS would each pay about $4.66 million, Warner about $11.2 million, Fox $6.04 million, and NBC/Universal $7.44 million. MGM would pay $320,000 and the entire universe of remaining companies would assume the remainder of about $8.3 million per year. As we’ve stated repeatedly, our proposals are more than reasonable and the companies have no excuse for denying it.

The AMPTP’s intractability is dispiriting news but it must also be motivating. Any movement on the part of these multinational conglomerates has been the result of the collective action of our membership, with the support of SAG, other unions, supportive politicians, and the general public. We must fight on, returning to the lines on Monday in force to make it clear that we will not back down, that we will not accept a bad deal, and that we are all in this together.

Patric M. Verrone, President, WGAW
Michael Winship, President, WGAE

UPDATE: Here’s the AMPTP official statement from Talks Day #4:

LOS ANGELES, November 29, 2007 – “The AMPTP today unveiled a New Economic Partnership to the WGA, which includes groundbreaking moves in several areas of new media, including streaming, content made for new media and programming delivered over digital broadcast channels.

The entire value of the New Economic Partnership will deliver more than $130 million in additional compensation above and beyond the more than $1.3 billion writers already receive each year. In response, the WGA has asked for time to study the proposals. While we we strongly preferred to continue discussions, we respect and understand the WGA’s desire to review the proposals. We look forward to resuming talks on Tuesday, December 4.

We continue to believe that there is common ground to be found between the two sides, and that our proposal for a New Economic Partnership offers the best chance to find it.”

EXCLUSIVE BULLETIN: The AMPTP presented what its sources just told me are “a number of New Media proposals” today at Talks Day #4. “This is the day it shook loose,” a relieved insider just told me minutes ago. (This is also what I was reporting in my explusive post, Moguls Supposed To Present A Better Offer To Writers At Talks Today.) I’ve learned the AMPTP presented the WGA with “new terms involving streaming, made-for, Internet, and other issues”. The networks and studios are claiming that WGA requested a suspension in the talks until Tuesday December 4th to study the new proposals. My sources say this came as something of a surprise to the moguls’ side because their negotiating team was “ready to keep bargaining through the weekend”. On the other hand, the AMPTP side finally presented the terms with so much fanfare that it really surprised the WGA negotiators who’d been increasingly doubful they’d ever see anything new. But let’s not be overly optimistic or naive, either. The big questions now are: Are these truly “new” proposals or just newly packaged “old” proposals? And are they good enough to get this strike settled by Christmas?
Let’s hope…

180 Comments

No 90 minute cock tease waiting for the news, nikki? You going soft on us?

No Nikki • on Nov 29, 2007 3:47 pm

Dec 4? Why can’t they review tomorrow and get back to talks on Saturday?

What are they waiting for? • on Nov 29, 2007 3:47 pm

Why is the WGA breaking off talks? Are they quick writers but slow readers?
Keep talking while you study it. Don’t leave the room. You are talking to the people who can answer questions.
Do writers have to picket the WGA to keep the Guild talking?
Why is the WGA stretching things out? I’ve heard of the war on Christmas. This is war on Christmas bonuses.
We’re out of work. Settle this now.

Family Guy • on Nov 29, 2007 3:47 pm

At this point we should really just focus on Christmas. The Strike will not be resolved before the 25th and I’d rather just relax and enjoy the holidays. Let these guys hammer it out and we can all get back to FAO Schwartz for a little bargain hunting.

Nice! Real, concrete good news. I’m going to stay cautiously hopeful. At least this is the first sign they might actually be negotiating in good faith, so let’s please at least try to keep the killjoy-ing within limits, okay? It’s not a solution, but it’s progress. I’ll take it.

WGA Writer with Business Sense • on Nov 29, 2007 3:47 pm

Can we now finally stop whomever on here is beating the tired old drum of “force majeur?”

The game is so much bigger than letting go a few million in overall deals that didn’t turn out so great.

The companies have realized, as has the guild, that we must end this, and soon, or we will all suffer enormous losses that cannot be made up.

Seriously, let’s try to be patient because now, for the first time, we are actually negotiating. We aren’t being asked to pretend that the kooky interweb the kids are all so crazy about is no way to make real money.

It sounds as if everyone is acknowledging that the net is the way all content will soon be delivered, and trying to reason out how best to fairly compensate creatives, using the old models of syndication and DVD (or video) as the template.

It actually won’t be an easy task, but now everyone is focused on figuring it out, with reason, and at least the pretense of respect, which is, let’s face it, as good as it will get at this point.

Smart management, finally, from the companies. Let’s make sure that the writers don’t get caught up in playing the victims. We’ve won the PR war, it turns out that yes, we’re the ones who can entertain. Our videos are funnier and smarter than their non-existent videos.

The AMPTP and the WGA don’t actually, at this point, have the option of divorcing each other. It doesn’t matter if we truly like or trust each other. It’s just about numbers.

Now let’s focus on being boring businesspeople, and making a reasonable deal.

bill • on Nov 29, 2007 3:47 pm

“Why is the WGA breaking off talks?”

They’re not, idiot.

Semper Fi • on Nov 29, 2007 3:47 pm

I hope the WGA makes a statement explaining the suspension of talks. I get they need time for review, but I say lock the door and through away the key until these boys emerge with a resolution – around the clock hammering is in order. That super union AMPTP( make no mistake they are a union) will wag their collective finger saying WGA slowed the process down – AMPTP is ready to deal. The clock is ticking on force majeure and the ill will is mounting as more lay offs are coming down this Friday and the merchandisers keep reminding us to get into the holiday spirit. Before Christmas is tomorrow as far as I’m concerned. Let’s get a fair deal and all of us can go back to work and then go shopping.
Semper Fi

Average Joe • on Nov 29, 2007 3:47 pm

Jeez. Going back on Monday wouldn’t kill the WGA? I don’t see why they don’t just try to plow through and get this done. I’d give them tomorrow to review this with talks to resume on Saturday at the latest.

Some of us don’t have the wiggle room to drag this out any further.

Captain Obvious • on Nov 29, 2007 3:47 pm

My theory: Talks are being called off to cancel the press blackout so the WGA can discuss the proposals openly if they’re worth taking or debate them openly if they’re not.

Brian • on Nov 29, 2007 3:47 pm

Interesting that they had a press statement ready to release right after they announced their proposal… Seems to me they had this whole thing planned to go down exactly like this. Hopefully they actually presented something of value as opposed to making an empty gesture in an attempt to turn the tide of the PR war.

I thought there was supposed to be a news blackout on the talks. Why is the AMPTP issuing statements?

Norm A. Rae • on Nov 29, 2007 3:47 pm

Nice press release, AMPTP. So has this press blackout been downgraded to a brownout…?

not quite "middle" America • on Nov 29, 2007 3:47 pm

How is this a media blackout?
I thought neither side was supposed to talk.. especially with official releases.

Ted • on Nov 29, 2007 3:47 pm

Nice artwork! I bet Drudge is so jealous of your triple alarm bell thingy! His siren is so ’06 now.

Teamstermans • on Nov 29, 2007 3:47 pm

Comment by Family Guy
“At this point we should really just focus on Christmas. The Strike will not be resolved before the 25th and I’d rather just relax and enjoy the holidays. Let these guys hammer it out and we can all get back to FAO Schwartz for a little bargain hunting.”

How nice for you to be able to take the month off! I guess it is this kind of backbone that gain repsect for the rest of those “below the line.

wonder • on Nov 29, 2007 3:47 pm

how can they put out a press release when there is a media blackout?

Picket Guy 19557 • on Nov 29, 2007 3:47 pm

What happened to the “Media Blackout?” Anyone forgetting that the AMPTP called for it? Why do they get to make an annoucement when they finally get off their duffs and do something?

No way • on Nov 29, 2007 3:47 pm

Uh, isn’t there supposed to be a news blackout?

uh-oh... • on Nov 29, 2007 3:47 pm

Nice press release…

I am now concerned, as all striking writers should be. this is nicely worded…concilitory. We run the risk of looking like the pissy ones now…and may have made a mistake taking “the weekend.” There’s a time to let go of your egos and work for those of us who’ve been pounding the pavement. This is the first round that looks like it’s going to the producers…

and that makes me nervous.
wgaStriker

Anonymous • on Nov 29, 2007 3:47 pm

The AMPTo statement and numbers are lies — want proof, well weren’t they supposed to have a press blackout — which they have of course renegaded on in order to get out the first propaganda. — there’s an honest broker in the room now. Brian Lourd, Nicki you should check the veracity of the offer and the statement with him. This disinformation will last for the few hours it takes to put foward what really went on today. And it was the MPTP who said they needed until tuesday.
Greg Teer

Devil's Advocate • on Nov 29, 2007 3:47 pm

There are two sides to every story, and the AMPTP’s side is usually a lie. Let’s wait until the official Guild response before we start speculating…

T • on Nov 29, 2007 3:47 pm

I love how they throw numbers around like they mean a damn thing without seeing the terms. Do they really think the public is that gullible?